SOLID UNDERLYING PERFORMANCE; FULL YEAR OUTLOOK UNCHANGED
- Solid Group revenue performance, up 3% on an underlying basis.
- Underlying operating profit flat; reported Group profits in line
with expectations.
- Good performance from B2B; underlying revenue up 9% and
underlying profit up 14%.
- Resilient revenues at Associated: strong digital advertising (up
21%) and circulation (up 4%), offsetting print advertising decline (down 10%)
- Northcliffe operating profit up 34%.
- Profit before tax lower due to various one-off items.
- Active portfolio management; targeted acquisitions and disposal
of non-core assets.
- Net debt up £90m to £809m, but is expected to reduce in the
second half.
- Outlook for the year remains unchanged.
- Dividend increased by 6%.
Martin Morgan, Chief Executive, said:
"We have delivered a solid underlying performance in the first half reflecting
the strength of our B2B companies and the resilience of our national consumer
titles. As expected, disposals and certain one-off factors have led to lower
reported half year results.
Our international B2B companies have increased their underlying revenues and
profits by 9% and 14% respectively. Their reported results were lower due to
the impact of disposals and a low biennial half year for the events business.
Our UK consumer businesses have experienced more challenging conditions,
although underlying revenues were only slightly down. Within Associated,
circulation and digital revenue growth largely offset print advertising
weakness. Consumer first half profits were also affected by increased digital
promotional activity which we expect to be less pronounced in the second half.
We have continued actively to manage our portfolio of businesses and have made
several acquisitions and disposals during the period and into the second half,
to improve the overall quality and growth prospects of the Group. The
continued growth of our B2B companies and more positive momentum expected
within our consumer operations in the second half of the year means that we
expect to achieve growth in earnings* for the full financial year, compared to
the equivalent figure last year."
